k) Provisions:

Provisions are recognised when there is a present legal or constructive obligation that can be
estimated reliably,, as a result of a past event, when it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can
be m a d e of t be a mou n t of th e ob figatio rt* Proviso ns a re not recog ni se d f o r fu t u re op era ting lo sses,

Any reimbursement that the Company can be virtually certain to collect from a third party with
respect to the obligation is recognised as a separate asset. However, this asset may not exceed the
amount of the related provisions.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of economic resources wifi be required to settle the
obligation, the provisions are reversed. Where the effect of the time of money is material,
provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability, when discounting is used, the increase in the provisions due to the passage
of time is recognised as a finance cost,
f] Contingencies:

Where it is not probable that an inflow or an outflow of economic resources will be required, or
the amount cannot be estimated reliably, the asset or the obligation is not recognised in the
statement of balance sheet and is disclosed as a contingent asset or contingent liability. Possible
outcomes on oblige lions/rights, whose existence will only be confirmed by the occurrence or non¬
occurrence of one or more future events are also disclosed as contingent assets or contingent
liabilities.

m) Taxes on Income:

Tax expense comprises of current and deferred tax, Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Current
tax includes taxes to be paid on the profit earned during the year and for the prior periods.

Deferred income taxes are provided based on the balance sheet approach considering the
temporary differences between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes at the reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted
at the balance sheet date Deferred tax assets are recognised only to the extent that there is
reasonable certainty that sufficient future taxable Income will be available against which such
deferred tax assets can be realised. •

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company
writes off the carrying amount of a deferred tax asset to the extent that it is no longer probable
that sufficient future taxable income will be available against which deferred tax asset cart be
realized. Any such write-off is reversed to the extent that it becomes reasonably certain that
sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

n) Prior period items:

In case prior period adjustments are material in nature the company prepares restated financial
statement as required under Ind AS 8 - "Accounting Policies, Changes in Accounting Estimates and
Errors". In case of immaterial items pertaining to prior periods shown under respective items in
the Statement of Profit and Loss.

o} Cash and cash equivalents;

Cash and cash equivalents include cash on hand and at bank, deposits held at call with banks, other
short-term highly liquid investment with original maturities of three months or less that are readily
convertible to a known amount of cash which are subject to an Insignificant risk $fjF changes in value
and are held for meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered
an integral part of the Company's cash management,
p} Segment Reporting;

Identification of Segments:

The company's operating business is organized and managed separately according to the nature
of products and services provided, with each segment representing a strategic business unit that
offers different products and serves different markets. The analysis of geographical segments ts
based on the areas in which major operating divisions of the company operate Operating
Segments are reported in a manner consistent with internal reporting provided to the Executive
Manager/ Chief Operating Decision Maker (CODM).

The Board of Directors of the company has Identified one of Directors as the CODM.
q} Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity,

Financial Assets:

a. Initial recognition and measurement:

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to-the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in the statement of profit or loss. Purchases or sales of
financial assets that require delivery of assets within a time frame established by regulation
or convention in the marketplace (regular way trades) are recognised on the tr^de date, Le.,
the date that the company commits to purchase or sell the asset,

m, \c\

b. Subsequent measurement;

For the purpose of subsequent measurement, financial assets are classified in to following
categories

a. Debt instruments at amortised cost

b. Debt Instruments at fair value through profit and loss (FVTPL)

c. Equity instruments at fair value through profit and loss (FVTPL)

a. Debts Instruments at amortised cost;

A 'Debt Instrument* is measured at the amortised cost if both the following
conditions are met;

i. The asset i s he I d with i n a b usiness m ode I w hose objective is to ho I d a ssets for
collecting contractual cash flows, and

ii. Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (5PPE) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR) method-

Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of EIR. The EIR a monisation
is included pit other Income in the profit or loss. The losses arising from impairment
are recognised in the profit or loss.

b» Debt Instruments at Fair value through profit and loss {FVTPL):

As per the Ind AS 101 and Ind AS 109, the Company is permitted to designate the
previously recognised financial asset at initial recognition irrevocably at fair value
through profit and loss on the basis of fact and circumstances that exists on the
date of transition to ind AS, Debt instruments included within the FVTPL category
are measured at fair value with afl changes recognised in the statement of Profit
and Loss.

c. Equity instruments at fair value through profit and loss (FVTPL);

Equity instruments in the scope of Ind AS 109 are measured at fair value, The
classification is made on initial recognition and is Irrevocable. Subsequent changes
in the fair values at each reporting date are recognised in the Statement of Profit
and Loss.

/AN/ . XT A\

c. Derecognition:

A f i n a ncial asset o r whe re applicable, a part of a financial asset is pri ma rily d e re cog n ised
when;

a, The rights to receive cash flows from the asset have expired, or

b. The company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay
to a third party under a 'pass-through' arrangement; and either (a) the Company
has transferred substantially alt the risks and rewards of the asset, or (b} the
company has neither transferred nor retained substantially all the risks and
rewards of the asset but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates, if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all the risks and rewards of the asset, nor transferred control of
the asset, the company continues ta recognise the transferred asset to the extent of
the company's continuing involvement. In that case, the company also recognises an
associated liability, The transferred asset and the associated liahility are measured on
a basis that reflects the rights and obligations that the company has retained.

d- Impairment of financial assets:

In accordance with Ind AS 109, the Company applies the expected credit loss (ECL)
model for measurement and recognition of Impairment loss on financial instruments,

Expected credit loss Is the difference between all contractual cash flows that are due
to the company in accordance with the contract and all the cash flows that the entity
expects to receive.

The management uses a provision matrix to determine the impairment loss on the
portfolio of trade and other receivables. Pruvision matrix Is based on its historically
observed expected credit loss rates over the expected life of the trade receivables and
is adjusted for forward looking estimates.

The expected credit loss allowance or reversal recognised during the period is
recognised as income or expense, as the case may be, fn the statement of profit and
loss. In case Df balance sheet, it is shown as an adjustment from the specific financial
asset.

Financial liabilities:

a. initial recognition and measurement:

At initial recognition, all financial liabilities are recognised at fair value and in the case
of loans, borrowings and payables, net of directly attributable transaction costs.

b. Subsequent measurement:

L Financial liabilities at fair value through profit or loss

Financial liabilities ai fair value through profit or loss include financial liabilities
held for trading and Financial [labilities designated upon initial recognition as at fair
value through profit or loss Gains or losses on liabilities held for trading are
recognised in the profit or loss. The company does not designate any financial
liability at fair value through profit or loss.

ji. Financial liabilities at amortised cost:

Am o rtised co st, i n the case of fine ricEal liabilities w ith mat ur i ty m o re t han one ye a r,
is calculated by discounting the future cash flows with an effective Interest rate.
Effective interest rate amortisation is Included as finance costs in the statement of
profit and loss. Financial liability with maturity of less than one year is shown at
transaction value
C- Derecognition:

Financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires, The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other Income or finance costs.

Reclassification:

The Company determines classification of financial assets and liabilities on Initial recognition.
After initial recognition, no reclassification is made for financial assets which are equity
instruments and financial liabilities. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the
immediately next reporting period following the change In business model. The Company
does not restate any previously recognised gains, losses (including impairment gains or losses)
or interest,

r) Fair Value Measurement:

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, The fair value
measurement Is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either

* in the principal market for such asset or liability, or

• in the absence of a principal market, in the most advantageous market which Es accessible
to the company.

The fair value of an asset or a liability is treasured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financiai asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
Input that Is significant to the fair value measurement as a whole:

a. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or
liabilities.

b. Level 1 - Valuation techniques for which the lowest level input that is significant to the fair
value measurements is directly or indirectly observable.

c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised In the financial statements on recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re
assessing the categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

Hi

^L There Wite a settlement with the Recognised Labour Union VI*., "GPTL Karmika Sangam" In the year 2001
and the settlement amount Was paid and accepted by the workmen . The settlement covered 214 workmen
against which 205 workmen accepted the payment . Out of 205 workmen , 139 workmen have filed For a
further claim in 2017 before the Additional Labour Court alleging that the Company misfed the workmen
with the support of the President of Union . The case Is In the hearing stage. Though the remaining 9
workmen were also part of the Recognised Union refused to accept the payment and abide by the terms of
the settlement . The claim made by them towards the arrears of the emoluments is disputed by the

^H Represents the daims made by the transporters on the company towards interest on the arrears of transport
charges which is disouted bvthe comoanw

Represents interest claim made by the vendors on the company on delayed payments which is disputed by
the comcanw

Iv. The sales made by SUvassa Unit were exempt from Sales Tax, During the assessment proceedings relating to
the years 2000-09 and 200<MQ the company could not submit some of the C Forms and the assessment was
completed based on the court direction with a stipulation that If any liability arises on account of non
submission of C forms to the extent of ^ 14,55 Lakhs (including Interest of T 1,35 Lakhsjthe same is to be
discharged by the company,

II Represents the difference between salaries payable to employees as per their terms of appointment and
actual salaries oaid bv the Resolution Professional.

M )°J

25. Optionally Convertible interest free debt can be converted into equity at par within three years at the
option of the contributors.

26. The company has not been declared as willful defaulter by any Bank or Financial Institution or
Government or any Government Authority,

27. In the opinion of the management, the analytical ratios to be disclosed as required by the additional
regulatory information are not relevant to the considering the ievel and nature of its activity, hence the
same are not computed and disclosed.

28. In terms of Indian Accounting Standard (Ind AS 12) - ''Income Tales'¹ as specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Ruies, 2014, there is a net deferred tax asset as
on March 31,2024, In the absence of convincing evidence regarding the availability of sufficient taxable
income In near future against which the deferred tax asset can be adjusted, the Company has not
recognised the deferred tax asset arising due to temporary differences and unused tax losses at
present

29. As the Company is in the revival process, the company is of the view that it can fully utilise the balance
lying in the GST account amounting to R5.17fi.61 lakhs grouped under the balance with statutory
authorities.

9< Other Information:
i. Plan Assets:

^{The plan ass&ts are} ^vested in a special fund managed by Life Insurance Corporation of
India. Expected Return on Assets is based on rate of return declared by fund managers.

if Present value of defined benefit obligation:

Present value of the defined benefit obligation is calculated by using Projected Unit
Credit method (PUC Method). Under the PUC method a "projected accrued benefit" is
calculated at the beginning of the year and again at the end of the year for each benefit
that will accrue for all active members of the Plan. The 'projected accrued benefit" is
based on the Plan’s accrual formula and upon service as of the beginning or end of the
year but USfhg a member's final compensation projected to the age at which the
employee is assumed to leave active service, The Plan Liability is the actuarial present

value of the "projected accrued benefits" as of the beginning of the year for active
members.

iii. Expected average remaining service Vs. Average Remaining Future Service;

The average remaining Semite can be arithmetically arrived by deducting current age
from normal retirement age whereas the expected average remaining future service has
arrived actuarial^ by applying multiple decrements to the average remaining future
service namely mortality and withdrawals. Thus, the expected average remaining ^vice
is always Fess than the average remaining future service,

iv. The rate of escalation in compensation considered in the above valuation is estimated
taking into account inflation, seniority, promotion and other relevant factors and the
above information is as certified by an actuary.

Fair value of and security deposits have been calculated by discounting future cashflows using rates
currently available for debit on similar terms, credit risk and remaining maturities.

Description of significant observable inputs to valuation:

a. Interest free Security Deposits (assets):

The carrying value ls assumed to be the fair value of all non-current Security Deposits with no
repayment terms.

b, Repayable Security Deposits (liabilities):

Since all the Security Deposits are current in nature the carrying value is assumed to be the fair
value of such advances,

d, Rupee Term Loans:

Since all the Rupee Term Loans are either overdue or are current in nature as at the reporting
dates, the carrying value is assumed to be the fair value of such term loans.

e. Short Term Borrowings:

Since the short-term borrowings are current in nature and overdue, the carrying value is assumed
to be the fair value of such borrowings.

37. Rnsncid] Risk JVfanagoinent objectives and policies;

The company is exposed Co financial risks arising from its operations and the use of financial
instruments. The key financial risks include market risk, credit risk and liquidity risk. The company's risk
management polices focus on the unpredictability of financial markets and seek to where appropriate
minimize potential adverse effects on the financial performance of the company and there has been no
change to the company's exposure to these financial risks or the manner in which it manages and
measures the risks.

The following sections provide the details regarding the Company's exposure to the financial risks
associated with financial instruments held in the ordinary course of business and the objectives
policies, and processes for the management of these risks.

The Company s principal financial liabilities comprise loans and borrowings, trade, and other payables
The mam purpose of these financial liabilities is to finance and support the Company's operations. The
Company's principal financial assets include trade and other receivables, and cash and cash equivalents
are derived from its operations

The company is exposed to market risk, credit risk and liquidity risk, The Company's management
oversees the mitigation of the risks. The Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance
with the Company's policies and risk objectives. The management / board reviews and agrees policies
f o r man aging each of t he se ri s ks, w h ich a re s u m ma rize d below. '

1, Market Risk:

Market rtsk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprise three types of risk: currency rate risk,
interest rate risk and other price risks such as equity risk. Financial Instruments affected by market
risk include loans and advances and deposits.

a. Interest rate risk:

Interest rate risk is the risk that the fair value Dr future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company's exposure to the risk
of changes in market interest rates relates primarily to the borrowings, loans and advances
given by the company and Cash and Cash equivalents,

Since ail the company's long-term debt obligations are either overdue or payable within the
next twelve months as at the respective reporting dates, the company is not exposed to
significant interest risk.

b- Foreign Currency Risk:

Currency risk is the risk that the value of a financiai instrument will fluctuate due to changes
In foreign exchange rates. Currency risk arises when transactions are denominated in foreign
currencies.

As there were no transactions denominated in foreign currencies in any of the reporting
periods, the company is not exposed to any foreign currency risk as at the respective reporting
dates.

c. Other price risk:

Other price risk is the risk that the fair value or future cash flows of the Company's financial
instruments will fluctuate because of changes in market prices (other than those arising from
interest rate risk or currency risk) whether those changes are caused by factors specific to the
individual financial instrument or Its issuer or by factors affecting all similar financial
instruments traded in the market.

The company, based on working capital requirement, keeps its liquid funds in current
accounts. The company doesn't have any significant other price risk.

ii. Credit risk:

Credit risk is the risk of loss that may arise on outstanding financiai instruments when a
counterparty default on its obligations. The Company's exposure to credit risk arises primarily
from trade and other receivables. For other financial assets (including cash and term deposits) the
Company minimise credit risk by dealing exclusively with high credit rating counterparties. The
Company's objective Is to seek continual revenue growth while minimizing losses incurred due to
increased credit risk exposure. The Company trades only with recognised and creditworthy third
parties. It is the Company's polity that all customers who wish to trade on credit terms are subject
to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the
Company's exposure to bad debts is not significant

a. Exposure to credit risk;

At the end of the reporting period the Company's maximum exposure to credit risk Is
represented by the carrying amount of each class of financial assets recognised in the
^ \ ^s^jtertient of financial position. No other financial assets carry a significant exposure to credit

__

b. Credit risk concentration profife:

At the end of the reporting period there were no significant concentrations of credit risk. The
maximum exposures to credit risk in relation to each class of recognised financial assets is
represented by the carrying amount of each financial assets as indicated in the balance sheet.

c. Financial assets that are neither past due nor impaired:

Trade and other receivables that are neither past due nor impaired are creditworthy debtors
with a good payment record with the Company. Cash and term deposits that are neither past
due nor impaired are placed with or entered with reputable banks financial institutions or
companies with high credit ratings and no history of default.

Hi- Liquidity risk:

The nsk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset.

the company ensures that it has sufficient cash on demand to meet expected operational
demands including the servicing of financial obligations; this excludes the potential impact of
extreme circumstances that cannot reasonably be predicted.

The table below summarises the maturity profile of the Company's financial liabilities based on
contractual undiscounted payments.

Excessive Risk Concentration:

Concentrations arise when a number of counterparties are engaged in similar business activities or
activmes in the same geographical region or have economic features that would cause their ability
to meet contractual obligations to be similarly affected by changes in economic, political or other
conditions. Concentrations indicate the relative sensitivity of the company's performance to
developments affecting a particular industry.

in order to avoid excessive concentrations of risk, the Company's policies and procedures include
specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations
of credit risks are controlled and managed accordingly.

38, Capital Management:

Capital includes equity attributable to the equity holders of the company. The primary objective of the
capita I management is to ensure that it maintains an efficient capital structure and healthy capital ratios
In order to siipport its business and maximise shareholder's value

The Company manages its capital structure and makes adjustments in Sight of changes in economic
conditions and the requirements of the financial covenants. The Company monitors capital using a
gearing ratio, which is debt divided by total capital plus debt. The Company's policy is to keep the
gearing ratio at an optimal level to ensure that the debt related covenants are complied with,
tt Total Borrowings include Long Term borrowings,, shortterm maturities of long-term borrowings and
working capital loans like Cash Credit and Buyers Credit.

No changes were made in the objectives, policies, or processes for managing capital during (he years
ended March 31, 2024, and March 31, 2023,

per our report of even date for and on behalf of the Board

For Brahmayya & Co., ^

Chartered Accountants fC ^

F.R. Number: 0Q0513S \ 'V*-—

<f ^Direc,or ^

P,C^^>I^OULI^t/ 'K Director

Partner ^/

Membership No: 025211

iCi

Place: Hyderabad f|( %f₄ j^jj V SUBRAMANIAN

Date: May 30,2024 WJ Vice President, Secretary & CFO